Why cloud accounting

Why cloud accounting

If you’re considering moving to cloud accounting software, here are some key bits of information to help you decide.

The term “cloud accounting” means having your business finances stored and managed using online software so this is one of the main differences between the more traditional software which would be installed locally on your computer or perhaps keeping multiple and often complicated spreadsheets.

There are many benefits to using the cloud including:

Direct feeds with major banks to save on data input

Access to data from anywhere with an internet connection

No need for software updates and you will always have the latest version

Data backups are handled for you

Bank level security of data

Customer support is usually included in the license fee

Greater integration options with third party products

Electronic document storage (such as invoices and receipts)

Shared access with your accountants and/or tax advisors

Greater access to data helps in all lines of business. Some trades will find this handy for raising invoices at the customers premises as soon as work is complete whilst others might want financial figures to hand when meeting with the bank. Employees can also get involved by submitting expense claims and timesheets online which can all link in with the payroll system.

Integration with other software is also a big plus and allows seamless synchronisation with all sorts of business tools for every business sector. This can include CRM systems, stock control, project management, POS systems, forecasting....there are literally hundreds!

Pricing for cloud accounting software is almost always based on a monthly license fee rather than a large one-off software purchase so this is always going to help from a cash flow point of view. You can expect to pay in the region of £15-£20 per month plus VAT but higher costs may apply to businesses that deal with multiple currencies or need some of the enhanced features. Most providers will also offer a free 30-day trial so you can try it out without any obligation.

Finally, with an ever-increasing focus on compliance and legislation, you can rest assured knowing that your cloud software provider will have everything in hand to keep you up to date without charging you for expensive upgrades.